Private Money vs. Conventional Church Loans

A private money church loan trades cost for speed and flexibility: it can close quickly and can work for churches a bank will decline, but it costs more and runs for a shorter term. A conventional church loan costs less and runs longer, but it takes more time to close and needs stronger financials. Your church does not have to work out which one it needs. Griffin Church Loans is a direct private money lender and we also offer traditional loans to churches and other religious organizations: tell us about your situation and we will tell you which path fits. Since 1999, Griffin has closed more than 2,000 church loans totaling over $2 billion.

What is a private money church loan?

A private money church loan is funded from a lender's own capital rather than by a bank or an institutional program. Griffin makes, holds and services its private money church loans, so the decision to lend is made in-house. That is why a private money loan can move quickly, and why it can look past things a bank will not: a recent run of late payments, a dip in giving, a leadership change, or a purchase deadline that will not wait. Griffin's private money church loan program goes up to 60% loan-to-value, with terms of 3 to 5 years on interest-only payments.

What is a conventional church loan?

A conventional church loan, also called a traditional church loan, is longer-term financing underwritten to institutional standards. It suits churches with steady giving, a clean payment history and financial statements that show the church can comfortably carry the payment. Griffin also offers traditional loans to churches and other religious organizations whose financials support them, up to 80% loan-to-value on the conventional program. Expect a fuller review and a longer timeline than private money, in exchange for a lower cost over the life of the loan.

Comparison

Private money vs. conventional church loans: key differences

Comparison point	Private money program	Conventional program
Griffin's role	Makes, holds and services its private money loans	Traditional loans also offered by Griffin
Maximum LTV	Up to 60% (private money program)	Up to 80% (conventional program)
Loan terms	3 to 5 years, interest-only (private money program)	Fixed terms generally 5 to 20 years (conventional program)
Cost	Higher	Lower over the life of the loan
Speed	Faster; built for deadlines	Slower; fuller underwriting
Credit history	Recent late payments or falling income can be worked with	Needs steady giving and a clean payment record
Loan sizes	From $50,000 to $35,000,000	Within Griffin's overall range of $50,000 to $35,000,000

Private money program

Griffin's role: Makes, holds and services its private money loans
Maximum LTV: Up to 60% (private money program)
Loan terms: 3 to 5 years, interest-only (private money program)
Cost: Higher
Speed: Faster; built for deadlines
Credit history: Recent late payments or falling income can be worked with
Loan sizes: From $50,000 to $35,000,000

Conventional program

Griffin's role: Traditional loans also offered by Griffin
Maximum LTV: Up to 80% (conventional program)
Loan terms: Fixed terms generally 5 to 20 years (conventional program)
Cost: Lower over the life of the loan
Speed: Slower; fuller underwriting
Credit history: Needs steady giving and a clean payment record
Loan sizes: Within Griffin's overall range of $50,000 to $35,000,000

When does a private money church loan make sense?

A purchase or payoff deadline that a traditional loan process cannot meet.
Late payments on the church's current mortgage.
A drop in church income that puts the church below what a traditional lender will accept.

In our experience since 1999, most churches that come to us for private money are in one of two positions: they need to close faster than a traditional loan allows, or something in their recent history means a traditional lender will not lend.

When does a conventional church loan make sense?

If the church's giving is steady, its payments are current, its financial statements are in order and no deadline is forcing a quick close, a conventional loan is usually the better choice, because it costs less over time and runs longer.

Underwriting

What does underwriting look at first in a church's financials?

The church's ability to service the debt: whether its income reliably covers the proposed payment, with room to spare. Lenders measure this with the debt service coverage ratio, which compares the income available for debt payments with the payments themselves, and church lenders generally look for coverage in the range of 1.0 to 1.35. A church can check where it stands before applying with Griffin's church DSCR calculator.

Common mistake

What is the most common mistake churches make when choosing?

Not deciding quickly enough. They do not recognize they are in a situation where a traditional loan will not be approved, so they keep trying, and by the time they decide on private money there is no longer enough time to close.

Our 2026 Church Finance Trends survey of 113 U.S. church leaders points the same way: boards and finance committees are more involved in financial decisions than before, and decisions are taking longer. That care is healthy. But when a traditional approval is not realistic, every month spent chasing one comes out of the time a private money loan needs to close.

Path forward

Can a church move from private money to a conventional loan?

Yes, and it is worth planning for from the start. Because private money terms run 3 to 5 years, a church should know before closing how it expects to repay or refinance at the end of the term. The years in between are the time to rebuild what a conventional lender will look for: steady giving, on-time payments and financial statements that show the church can carry the debt. Because Griffin is a direct private money lender and also offers traditional loans, that next step can be planned with the same team.

FAQ

Can a private money loan stop a church foreclosure?

Private money can stop a church being foreclosed on. Even if a church is in bankruptcy, we can lend to take them out of it.

Timing matters more here than anywhere else. A foreclosure sale date does not move, so the earlier we see the file, the more options the church has. Every situation is evaluated individually, and a church facing either should start an application as early as possible.

Can a church get a loan after missed mortgage payments?

Often, yes, through the private money program. Recent late payments are one of the most common reasons a traditional lender declines a church, and one of the situations private money is built for. The question that matters is whether the church can carry the new payment going forward.

Is a private money church loan more expensive?

Yes. Private money costs more than a conventional loan, which is why it is the right tool only when a conventional loan is not available in time, or not available at all. For a church facing foreclosure or a deadline it cannot meet, the real comparison is rarely private money against a cheaper loan. It is private money against losing the property or the opportunity.

Do church loans require a personal guarantee?

Loans from $50,000 to $500,000 require a personal guarantee. Above $500,000, personal guarantees are almost never required.

How fast can a church loan close?

Private money closings in as little as two weeks are possible, though that timeline is not typical; most transactions take longer, depending on the program and the church's documentation. Conventional loans take longer because of the fuller review.

Get started

Next step

You do not need to decide this on your own. Tell us about your church and what you are trying to do, and we will tell you which program fits and why. Start an application or schedule a consultation. Griffin works with churches of all denominations and other religious organizations in most parts of the United States.